Brief Fact Summary. Respondent Russ Owen and Appellant Israel Cohen entered a partnership agreement to run a bowling alley. Within a few months Respondent moved for a dissolution of the business once the partners’ relationship turned sour.
Synopsis of Rule of Law. A partner can move to dissolve a partnership if another partner’s conduct undermines or breaches the partnership agreement.
We agree with this interpretation of these provisions,Judicial dissolution may be appropriate where disagreement between the partners is so severe that all confidence and cooperation between the parties has been destroyed or where the behavior of a partner materially hinders a proper conduct of the partnership business.View Full Point of Law
Issue. The issue is whether Respondent offered a level of proof that would warrant a dissolution of the business.
Held. The evidence presented did support a dissolution of the business. A partner may move for a dissolution of the business when another partner’s conduct negatively affects the business or another partner willfully or repeatedly breaches the partnership agreement. Appellant refused to do his share of the work required and talked of pressuring Respondent out of the business. Appellant also took money from the business above and beyond the agreed amounts.
Discussion. Appellant maintained that the differences between the partners were minor, but taken as a whole the Appellant would have been allowed to subject Respondent to harsh, belittling treatment if the partnership was forced to continue.